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RHT Health Trust and Fortis extend exclusivity period for talks on proposed sale of assets
SINGAPORE-LISTED RHT Health Trust said it has entered into an agreement to extend the exclusivity period with Fortis Healthcare by an additional period of 31 days commencing from Jan 12, 2018.
This is to facilitate the continued negotiations and finalisation of the definitive agreements on the proposed disposal of its entire portfolio of healthcare assets for close to S$1 billion to Fortis.
Fortis has also undertaken to pay to the various RHT entities an outstanding amount of 978.7 million rupees as of Sept 30, 2017, arising from certain service fees and interest income on the compulsorily convertible debentures (CCDs) by Jan 31.
The trustee-manager of RHT Health Trust had earlier granted Fortis a 60-day period starting from Nov 14, 2017, which is the date of the term sheet, to negotiate exclusively with each other on the proposed transaction. While negotiations with Fortis are at an advanced stage, the parties were not in a position to finalise the definitive agreements before the expiry of the exclusivity period, it said.
The offer price by Fortis for RHT's assets was 46.5 billion rupees (S$966 million), or S$0.90 a unit, representing a 7.8 per cent premium over the latest reported net asset value of S$0.835 per share.
RHT Health Trust has interests in 12 clinical establishments, four greenfield clinical establishments and two operating hospitals in India. Its manager has appointed Merrill Lynch (Singapore) to advise on the proposed disposal.
Fortis, a large integrated healthcare delivery service provider in India, holds an indirect interest of about 29.76 per cent of units in RHT.